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This is an archive article published on August 30, 2011

UT Excise office slaps notice on PGI

After failing to satisfy the queries pertaining to the sale of Fluorodeoxyglucose,a radio-pharmaceutical,to cancer institutes,UT Excise department on Monday served a new show cause notice to PGI authorities asking why the sale should not be taxed.

After failing to satisfy the queries pertaining to the sale of Fluorodeoxyglucose (F-18 FDG),a radio-pharmaceutical,to cancer institutes,UT Excise department on Monday served a new show cause notice to PGI authorities asking why the sale should not be taxed.

PGI had been in the dock for manufacturing F-18 and selling it to cancer institutes. The UT Excise department has already given three chances to PGI authorities to clarify why they have not paid towards the VAT pertaining to the sale of the radio-pharmaceutical.

F-18 is used in the medical imaging modality Positron Emission Tomography (PET). Once the F18 is injected into a patient,a PET scanner can form images of the distribution of FDG in the body. A radiologist or nuclear medicine expert can assess the images to detect cancer.

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PGI supplies around 150 doses every month for Rs 5,000 per dose. But the institute has not registered with the UT Excise and Taxation department.

Taking cognisance of the matter,the UT tax department had slapped a notice on PGI for indulging in trade practices without getting mandatory registration. The notice has been served twice but the reply filed by the PGI had been inadequate,stated a senior official of UT Excise department.

The department has given 10 days time to PGI to furnish details failing which,the UT taxation department may send a notice to the Ministry of Health and Family Welfare,which is the authority over PGI.

The faculty members of the department,however,maintain that apart from the tax issue,which is handled by PGI’s accounts branch,the department has valid permission from a committee constituted by BARC (Babha Atomic Research Centre),to provide F 18 to other institutes.

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“Since PGI alone has a cyclotron which is a very expensive device used in the process,we are authorised by a valid committee to provide the radio-pharmaceutical to institutes who cannot afford to manufacture it”,said a faculty member of the department of Nuclear Medicine.

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